Q3 2024 Advanced Micro Devices Inc Earnings Call Transcript
Key Points
- Advanced Micro Devices Inc (AMD) reported a record third-quarter revenue of $6.8 billion, an 18% increase year-over-year, driven by strong data center and client processor sales.
- The data center segment revenue increased by 122% year-over-year to a record $3.5 billion, with significant growth in EPYC CPU and Instinct GPU sales.
- Gross margin expanded by 2.5 percentage points, and earnings per share increased by 31% year-over-year.
- AMD's client segment revenue grew by 29% year-over-year, driven by strong demand for Zen 5 notebook and desktop processors.
- The company raised its 2024 data center GPU revenue guidance from $4.5 billion to over $5 billion, reflecting strong customer demand and supply chain improvements.
- Gaming segment revenue declined by 69% year-over-year to $462 million, primarily due to decreased semi-custom sales as Microsoft and Sony reduced channel inventory.
- Embedded segment revenue decreased by 25% year-over-year to $927 million, with ongoing softness in the industrial market.
- Despite strong growth in data center and client segments, AMD's gaming and embedded segments experienced revenue declines, partially offsetting overall growth.
- The company faces a tight supply environment, which could impact its ability to meet growing demand, particularly in the data center GPU business.
- AMD's client business remains more consumer-weighted, which could present challenges in balancing ASPs and unit growth amid market fluctuations.
Greetings, and welcome to the AMD third quarter 2024 conference call. (Operator Instructions). And as a reminder, this conference is being recorded. It is now my pleasure to introduce you, Mitch Haws, Vice President of Investor Relations. Thank you, Mitch. You may begin.
Thank you, and welcome to AMD's third quarter 2024 financial results conference call. By now, you should have had the opportunity to review a copy of our earnings press release and the accompanying slides. If you have not had the chance to review these materials, they can be found on the Investor Relations page of amd.com.
We will refer primarily to non-GAAP financial measures during today's call. The full non-GAAP to GAAP reconciliations are available in today's press release and the slides posted on our website. Participants on today's conference call are Dr. Lisa Su, our Chair and Chief Executive Officer; and Jean Hu, our Executive Vice President, Chief Financial Officer and Treasurer. This is a live
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